TWST: Where are you focusing your attention in the metal and mining space these days?
Mr. Brandt: I focus on Latin America, and we're looking away from the flat steel side at the moment. We think this sector has a lot of issues from overcapacity and cost pressures and price pressures. We're focusing more on the mining side. We like the free cash flow and the valuations.
We also like the long steel side. Our two favorite names are Vale (VALE) and Gerdau (GGB). They're both rated "neutral," but within the Latin American metals and mining sector, they are our two favorite names.
TWST: What sets those two companies apart?
